EGN - Long Calls Entry & Trade Plan

26NOV07 - I am a consistently profitable, disciplined trader. I am working toward executing what I have been taught. Here is one good example. EGN, a natural gas company with strong fundamentals right near diagonal support. Recent hammer at the trendline on Friday and today. I got in this morning (after the first 30 min.) at the break of the short tern downtrend line. I set a trigger $62.13 at then bought a $60 JAN call for $4.50 ($0.10 below natural). I then turned right around and entered my contingent stop to sell $0.05 above the mark when it hits $60.44. The R:R is at the first target is 1 & 2.8 at second target of $67.23. Here we go...

27NOV07 - Price hit $60.42 and triggered the sale for a $100 loss.  Stop was a tad too tight.  Recent low from two days before was $60.46 so I should have set it 3% below that at least putting it at $58.65 which is a bit far for the R:R I was working with.

28NOV07 - Got back in at 7:37 am due to strength and early confirmation of the short downtrend break.  Paid $4.30 for (1) contract.

04DEC07 - Sold today when my second target trigger was hit and booked a $410 profit for a net gain incl. commissions of $404.  I could have squeaked out a bit more by setting a trailing stop or moving my stop up tighter but with the current market conditions I thought it best to take the profits safe and sound.  This is was a good disciplined trade.  Learned not to be so to the penny with the swing stops.  Next, learn to set LOC orders based on price triggers.